David will present his first budget proposal Monday at 6 p.m. at City Hall

BINGHAMTON – Mayor Richard David said relief from unstable tax rates is on the way when he unveils his 2015 budget proposal Monday night.

"One of my goals in this budget — and it's a goal I believe I've achieved — is to bring tax stability," said David, a Republican, who would not say what the rate would be. His address is at 6 p.m. in Council Chambers at 38 Hawley St., Binghamton.

Residential tax rates in the city have fluctuated in the past five years, increasing about 7 percent in 2010 and 2013 and less than one percent in 2012 and 2014. David said the wild changes are difficult for taxpayers in years with large increases.

For 2014, former Mayor Matthew T. Ryan, a Democrat, proposed a budget with a 0.4 percent tax rate increase. Council trimmed the increase to 0.1 percent for the final adopted budget.

Stabilization will take years, David said. Part of that initiative will be long-term cost saving strategies.

"It's a multi-year plan in place to stabilize taxes while we look to increase our revenues...while maintaining a premier level of services," he said.

Refinancing the 2007 bond would save the city $112,000 next year and $1 million total over the next 15 years, David said. Moving $5 million of they city's cash deposits to Chemung Canal Trust should raise revenues by $60,000, he said.

During his April State of the City address, David discussed replacing 7,000 street lights with energy-efficient LED lights to save money and conserve energy. He also pushed for the city to replace its aging water meters to boost water department revenues with more accurate readings and leak detection.

David said he hopes council moves ahead with both projects next year.

Despite his pledge to maintain police staffing, David said there would be personnel cuts in other departments.

"I really wanted to send a message...to all department heads that I want a lean, bare bones budget that is realistic," he said.

Spending in the proposed 2015 budget would be higher than last year's $88.5 million budget, David said, but he attributed the bulk of the increase to rising health care costs and union-negotiated salaries.

David also said he is concerned about the city's credit rating. In January 2013, the rating tied to long-term debt was downgraded, from A1 to A2, which affects interest rates on Binghamton's future borrowing.

"When you're talking capital projects, which are multiple millions of dollars, any minute adjustment in interest rates can have a significant impact," David said.

Poor accounting practices, including missed audits, were a cause of the downgrade, David said, noting he is committed to tightened financial controls.

"The time when the city had difficulty completing audits of financial statements and getting them submitted is over," he said.

City Council will review David's budget proposal and adopt a final budget in November. The mayor can veto changes, but council would have the opportunity to override vetoes in a separate vote.

Council President Teri Rennia, D-3rd District, said she's interested to see David's budget proposal.

"Honestly I have no idea what to expect," she said.

Councilman Joe Mihalko, R-2nd District, said he wants to see the tax rate remain as stable as possible this year. He's also supportive of spending for police, fire and other basic city services.

"We definitely need to continue with the infrastructure spending," he said.

If you go

Binghamton Mayor Richard David will present his 2015 budget proposal Monday night in Council Chambers at 38 Hawley St., Binghamton.